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Freki

Home not selling so let's leverage us further

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The horrible neighbour is horrible to us personally, he hates us because we objected to his extension, raised a boundary dispute out of spite/ to blackmail us and put me through hell. He wont be a neighbour from hell to others.

Erm so he hates you and you think he will be nice to your tenants who if he drives out could leave you with voids / loss of income ....yeah I'm sure he will be a delight to them 

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If interest rates went up significantly we would be flocked I think. I was imagining a scenario where loads of people suddenly can't afford their mortgages, the market is flooded with houses, there is a property crash and we end up homeless. 

Yes please! Bring it on! Apart from the homeless bit, I wouldn't wish that on anyone nor would mass homelessness be likely in a huge crash.

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15 minutes ago, Nabby81 said:

Erm so he hates you and you think he will be nice to your tenants who if he drives out could leave you with voids / loss of income ....yeah I'm sure he will be a delight to them 

Maybe he hates them for a reason which will vanish when they move........They could be his neighbours from hell.

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Just saw this too, my reaction was despair.

I've seen a few examples recently of late where people acknowledge they expect the BoE to protect their asset prices. @adarmo openly acknowledged buying on that worst-case scenario basis, with a third level qualification in economics so a clear understanding of what's involved.

It shows the effects of moral hazard if nothing else.

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Even though I'm in the buy a house now camp I think she's nuts!

It's one thing to borrow to buy a home you're happy living in forever regardless of prices, interest rates or war with North Korea etc (i.e. me and the other half) but quite another to start leveraging the hell out of yourself to buy more property! We know we can cover our mortgage on one salary (a the moment at least) and worst case scenario we could both move in with family and rent it out while still paying something towards the mortgage. Having two mortgages though and relying on a tenant to pay one, with all that's going on right now I think she wants her head reading. It's marginal behaviours like this that really creates the instability within the market.

I agree with you @darkmarket (didn't know you could do that @ thing so cheers!) moral hazard is alive and well and driving us to hell.

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2 hours ago, Funn3r said:

Yes please! Bring it on! Apart from the homeless bit, I wouldn't wish that on anyone nor would mass homelessness be likely in a huge crash.

Thats very decent of you!

Sadly I know a number of very decent people who are likely to seriously struggle in a housing market crash and despite the fact they made their own choices with exactly the same information I had, I will still feel sorry for them and hope they pull through. My more generous feelings have a limit and they certainly don't extend to the buy to let leeches, the landlords of houses of multiple occupancy and other assorted chancers, gamblers and spivs, who have ridden an unprecedented bubble at the cost of others, all the while declaring their omnipotence.

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2 hours ago, Option5 said:

Maybe he hates them for a reason which will vanish when they move........They could be his neighbours from hell.

That does appear to be the case. If he's smart enough to figure out they are renting it he could bankrupt them by harassing the tenants

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2 minutes ago, afly said:

That does appear to be the case. If he's smart enough to figure out they are renting it he could bankrupt them by harassing the tenants

That would be unfortunate for the tenants as they'll be stuck with the lease..

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52 minutes ago, adarmo said:

Even though I'm in the buy a house now camp I think she's nuts!

It's one thing to borrow to buy a home you're happy living in forever regardless of prices, interest rates or war with North Korea etc (i.e. me and the other half) but quite another to start leveraging the hell out of yourself to buy more property! We know we can cover our mortgage on one salary (a the moment at least) and worst case scenario we could both move in with family and rent it out while still paying something towards the mortgage. Having two mortgages though and relying on a tenant to pay one, with all that's going on right now I think she wants her head reading. It's marginal behaviours like this that really creates the instability within the market.

I agree with you @darkmarket (didn't know you could do that @ thing so cheers!) moral hazard is alive and well and driving us to hell.

@adarmo neither did I.

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35 minutes ago, Switch625 said:

Thats very decent of you!

Sadly I know a number of very decent people who are likely to seriously struggle in a housing market crash.

No matter how much you "struggle" as a home owner in a crash your still better off then everyone who was never able to afford a house in the first place. Anyway  dont see the problem - they can still afford the repayments presumably, what their house is worth is immaterial.

Edited by goldbug9999

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52 minutes ago, goldbug9999 said:

No matter how much you "struggle" as a home owner in a crash your still better off then everyone who was never able to afford a house in the first place.

Well not really, it could be that post-crash you lost your deposit and are in debt to the banksters, and you don't own a house. As opposed to "just" not owning a house.

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What the frak* is going on on that other forum?!

Some people are talking sense? Perhaps this is a new experience for you.

*it's better than a bunch of asterisks

Edited by happily renting

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3 hours ago, goldbug9999 said:

No matter how much you "struggle" as a home owner in a crash your still better off then everyone who was never able to afford a house in the first place. Anyway  dont see the problem - they can still afford the repayments presumably, what their house is worth is immaterial.

In the short term I agree, I am sure they can afford the repayments and obviously I don't know what sort of deal they have on their mortgages, but I suspect they are short term with low rates. So in a crash, they are very likely to face negative equity and rising interest rates .....

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4 hours ago, adarmo said:

Even though I'm in the buy a house now camp I think she's nuts!

It's one thing to borrow to buy a home you're happy living in forever regardless of prices, interest rates or war with North Korea etc (i.e. me and the other half) but quite another to start leveraging the hell out of yourself to buy more property! We know we can cover our mortgage on one salary (a the moment at least) and worst case scenario we could both move in with family and rent it out while still paying something towards the mortgage. Having two mortgages though and relying on a tenant to pay one, with all that's going on right now I think she wants her head reading. It's marginal behaviours like this that really creates the instability within the market.

I agree with you @darkmarket (didn't know you could do that @ thing so cheers!) moral hazard is alive and well and driving us to hell.

The modern entitled to a bailout mindset. If low rates don't bail you out, the rest of the family will. Failure is not an option!

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6 hours ago, Switch625 said:

Thats very decent of you!

Sadly I know a number of very decent people who are likely to seriously struggle in a housing market crash and despite the fact they made their own choices with exactly the same information I had, I will still feel sorry for them and hope they pull through. My more generous feelings have a limit and they certainly don't extend to the buy to let leeches, the landlords of houses of multiple occupancy and other assorted chancers, gamblers and spivs, who have ridden an unprecedented bubble at the cost of others, all the while declaring their omnipotence.

The overstreched of 2007 have had 10 years of zilch IRs to pay down the mortgage.

If they are not saved by that then they are fcked.

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Agreed, if you bought in 2007 and haven't saved your ass in these conditions then you were a basket case anyway. The ones I am worried about are those that have bought (pun intended) the entire ponzi and jumped into the pool, just as the water is being let out i.e. in the last year or so

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2 hours ago, Democorruptcy said:

The modern entitled to a bailout mindset. If low rates don't bail you out, the rest of the family will. Failure is not an option!

I guess then nobody should ever buy a house because any contingency plan for a worst case scenario would render them with a modern entitled to a bailout mindset. FYI I think it would be highly unlikely that both of us would be unemployed (being a chartered accountant and a solicitor). 

Has it occurred to you that I might be buying this place because it has scope to build and annex where I might one day look after an elderly parent (or bail them out in your view)?

If you're seeking an absolute collapse in prices are you not expecting a bailout from this reality?

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she doesnt like the comments you guys have made, you should all be ashamed of yourselves;

loveka Wed 09-Aug-17 19:24:40

I've asked for this to be deleted because I think its quite identifying.

Normally I wouldn't care, but my thread has been posted on to another site.

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6 minutes ago, leonardratso said:

she doesnt like the comments you guys have made, you should all be ashamed of yourselves;

loveka Wed 09-Aug-17 19:24:40

I've asked for this to be deleted because I think its quite identifying.

Normally I wouldn't care, but my thread has been posted on to another site.

Yes, I agree, that lovely person should be entitled to become a landlord and get extra money, the advise you should be giving is that should interest rates rise, then she can just raise the rent innit!

On a side note, the house is worth 25k less coming from a sound reliable source her EA, that is enough to make a sound choice on using the 30% equity from her current asset to buy another property that could potentially be cheaper itself! Plus her other half may need to become the handy man in her new BTL empire, which is a win-win. Really people should be allowed to do whatever they want!

 

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2 hours ago, adarmo said:

I guess then nobody should ever buy a house because any contingency plan for a worst case scenario would render them with a modern entitled to a bailout mindset. FYI I think it would be highly unlikely that both of us would be unemployed (being a chartered accountant and a solicitor). 

Has it occurred to you that I might be buying this place because it has scope to build and annex where I might one day look after an elderly parent (or bail them out in your view)?

If you're seeking an absolute collapse in prices are you not expecting a bailout from this reality?

Each to their own. I just wouldn't be planning on family to pay for my poor financial decisions by impinging on their space.

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